Palm Oil and Palm Oil: What's the Difference?

8min
Articles
February 19, 2025
Grupo BBF

Both palm oil and palm oil come from the oil palm (Elaeis guineensis), a plant native to West Africa and widely cultivated in tropical regions. However, the difference between these oils lies in the production process and some of their characteristics.

oil palm fruit

  • Palm Oil: Extracted from the pulp of the palm fruit, palm oil has a smooth texture. This oil is widely used in the food industry, cosmetics, in cleaning products, in the production of biofuels and even in electricity generation, due to its versatility.
  • Palm oil: Also known as red palm oil, palm oil is denser and has a more pronounced flavor and reddish color. This oil is extracted from the same pulp, but its production is more traditional and less complex, which maintains its characteristic flavor. In cooking, especially in Afro-Brazilian and African dishes, palm oil is used to add color and intense flavor to recipes, such as acarajé and moqueca.

Despite being derived from the same plant, the uses of palm oil and palm oil are different. While palm oil is more valued in traditional cooking, palm oil has wider applications due to its processing.

Uses of palm oil

Palm oil is very versatile, used in various industries ranging from food to the production of biofuels and electricity generation. It has become a key resource in different sectors and is the most consumed vegetable oil in the world, according to the Brazilian Association of Palm Oil Producers.

Food Industry - In the food industry, palm oil is widely used in products such as margarine, cookies, chocolates, creams and a multitude of other processed foods. Its stability at high temperatures makes it excellent for frying and baking. In addition, palm oil has a semi-solid structure at room temperature, which makes it ideal for products that need to have a creamy or firm consistency, without the use of trans fats.

Cosmetics and Toiletries - Another sector that benefits from palm oil's properties is cosmetics and toiletries. It is often found in soaps, shampoos, conditioners, moisturizing creams and even make-up. Palm oil's presence in cosmetics is due to its ability to improve the texture and hydration of products, as well as its high stability and long durability.

Cleaning Products - The presence of palm oil in cleaning products and detergents is due to its efficiency as an emulsifying agent and the stability it offers to product formulas. As it is a biodegradable and safe oil, it is a sustainable option for cleaning products that are less aggressive to the environment.

Biofuel production - Palm oil has also made a name for itself in the production of biofuels. Global demand for alternatives to fossil fuels is increasing, and palm oil biodiesel is a renewable and cleaner solution. Burning it emits less carbon dioxide (CO₂) than petroleum-based diesel, helping to reduce the carbon footprint and combat climate change. Palm biodiesel is a viable source for generating electricity in remote regions.

Electricity Generation - In addition to biodiesel, palm oil can be used in electricity generators, especially in areas where access to energy is limited. In Brazil, the biomass generated by palm oil can be burned in boilers to generate steam and electricity, offering an alternative for isolated communities and even industries in regions that are difficult to access. This generation of electricity with palm oil reduces dependence on fossil fuels and strengthens the country's energy autonomy.

The difference between palm oil and palm oil goes beyond taste and color. While palm oil is a traditional ingredient with specific gastronomic applications, palm oil is a raw material of great importance in various sectors.

In this context, the Grupo BBF Brasil BioFuels) operates in 5 states in the northern region of Brazil and cultivates more than 75,000 hectares of oil palm in Pará and Roraima. Totaling more than 11 million palm trees, following one of the strictest laws(Agroecological Zoning of the palm), in which it can only be planted in degraded areas until 2007. Contributing to reducing deforestation and restoring anthropized soils.

Environmental benefits of oil palm cultivation

Recovering Degraded Areas and Regenerative Agriculture - One of the great advantages of oil palm cultivation is its potential to recover degraded areas. In many regions, areas that were once unproductive or degraded are being recovered through sustainable oil palm cultivation. In the Amazon, initiatives have used oil palm to restore ecosystems, contributing to soil conservation and promoting carbon capture. Regenerative agriculture, a practice that aims to restore soil health and biodiversity, is used by many oil palm producers who are committed to farming in an environmentally responsible way.

Reducing Greenhouse Gas Emissions - When used in biodiesel production, palm oil becomes an alternative to fossil fuels, helping to reduce greenhouse gas emissions. Burning palm biodiesel emits less carbon dioxide (CO₂) than fossil-based diesel, which is essential for reducing the carbon footprint of the transportation and energy sector. Countries that encourage the production of palm biodiesel contribute directly to the fight against climate change, since every liter of biodiesel that replaces conventional diesel significantly reduces the release of CO₂ into the atmosphere.

Preserving Biodiversity - Practices such as planting in already degraded areas and strict control of deforestation prevent the loss of natural habitats, as well as recovering biodiversity in these areas. The Grupo BBF, for example, has already recorded more than 400 species of wild animals in its cultivated areas. What was once empty, lifeless, now has animals roaming around. This production model values sustainability and creates a positive impact on the local fauna and flora. (See the full article)

Economic benefits of palm oil

Job creation and socio-economic development - The palm oil production chain has great potential to create jobs and foster economic development in various regions. In countries like Brazil, especially in the North and Northeast regions, oil palm cultivation is an important source of income for thousands of families, including family farmers and rural workers. The creation of direct and indirect job opportunities stimulates the local economy, improving the quality of life of the communities involved and promoting regional development.

At the Grupo BBF, for example, combining forest recovery and job creation is a commitment to sustainable agribusiness and socio-economic development in the regions surrounding its operations, as well as encouraging people from all over to come to Brazil in search of opportunities. Today, the company generates around 5,000 direct jobs and approximately 80% of its workforce is made up of workers who work in the field, planting seeds, doing pre-sowing and nursery work, maintaining the final planting and harvesting the fresh fruit bunches.

Sustainable Economic Alternative - Compared to other oil crops, palm oil is highly efficient in terms of yield. It requires less land to produce large volumes of oil, which means that palm can meet the growing demand for vegetable oils without having to constantly expand the area under cultivation. This high productivity helps stabilize prices on the market and provides a sustainable economic alternative for various industrial sectors that depend on vegetable oils for their products.

Expanding Biofuel Production and Renewable Energy - The production of biodiesel from palm oil is a renewable energy alternative, but it goes much further, opening up economic opportunities, especially in remote areas. The Grupo BBF generates energy for more than 140,000 residents of isolated communities in the Amazon. Offering energy independence, reducing the cost of energy, as well as strengthening the local economy while promoting a cleaner energy matrix.

Palm oil is an efficient raw material for a more sustainable future. Its applications go beyond the food sector to include biofuels, cosmetics, hygiene products and much more, always contributing to inclusive and environmentally conscious economic development. Raising awareness and encouraging the consumption of sustainable palm oil can ensure that this crop continues to bring lasting benefits to both the environment and the communities that depend on it.

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